World economy is an ‘urgent priority’: G7 leaders

ISE-SHIMA, JAPAN: Group of Seven leaders on Friday said that pumping up the world economy was an “urgent priority”, but left the door open for a go-your-own-way approach in a sign of lingering divisions over how to boost growth.

Going into a two-day summit, the club of rich nations was working to find common ground as host Japan looked to win backing for its view that government spending was key to lighting a fire under the world economy, while Germany instead emphasised economic reforms.

As they wrapped up the talks Friday, the group said they all agreed on the need to hammer out a workable plan that took into account the circumstances facing each member — also including the United States, Britain, France, Italy and Canada.

“Global growth is our urgent priority,” the G7 said in a final communique, adding that growth remained “moderate and below potential”.

“Taking into account country-specific circumstances, we commit to strengthening our economic policy responses in a cooperative manner and to employing a more forceful and balanced policy mix, in order to swiftly achieve a strong, sustainable and balanced growth pattern.”

It added: “We reiterate our commitments to using all policy tools –- monetary, fiscal and structural -– individually and collectively, to strengthen global demand and address supply constraints, while continuing our efforts to put debt on a sustainable path.”

The group also said it would stand by earlier pledges to stay committed to “mutually-reinforcing fiscal, monetary and structural policies”.